Re: Capital One - Increase in Credit Limit
07-31-2007 01:21 PM
Well, you have 3 options.
1. Do nothing, and your highest balance will be used as you "credit Limit", thus possibly hurting your score.
2. Wait it out. Rumor has it that they will be reporting credit limits later this year.
or #3 (This is what I did)
Capital One raised my CL from $400 to $2400 about 1 year ago. I had a ZERO balance on it. I used one of those "Courtesy Checks" (5.99%) and filled it out to myself for $2300, and put this money in an interest bearing saving account at INGDIRECT.com. I left enough room for any interest that could be charged on it. I then waited for the new balance to show up on my credit reports, then removed the cash from INGDIRECT and paid of the Capital One account.
My credit reports are now showing a high balance of $2377, with a balance of $110. That makes the utilization at 4.6%. Now from what I hear, THAT is the "Sweet Spot" to be with your utilization. You MAY have to pay a little interest, but it does wonders for your score.
I hope this helps